What is the difference between a Liechtenstein trust and a Liechtenstein foundation?

When the PGR came into force in 1926, Liechtenstein introduced both the foundation and the trust. The foundation comes from the civil legal system, whereas the trust has its roots in the Anglo-American legal system. In principle, a trust has the same function as a foundation. One important difference, however, is that unlike a foundation, a trust is not a legal entity. In the case of a trust, the settlor transfers movable or immovable property to a trustee with the obligation to administer it as trust property in his own name and as the owner for the benefit of one or more third parties (the beneficiaries) and to make distributions to the beneficiaries in accordance with the provisions of the trust deed. Both natural and legal persons can be trustees. In contrast to Anglo-Saxon law, a trust in Liechtenstein is not limited in time, but can be established for an indefinite period. In contrast, a foundation is established by a donor who determines its purpose and beneficiaries and donates its assets. The special purpose fund so created becomes a legal entity in the form of a foundation and is therefore independent. This means that the foundation, as a legal entity, is the owner of the donated assets. The Liechtenstein financial centre offers various types of foundations and trusts that can be used for family or other private-benefit purposes, charitable purposes or even mixed purposes (a combination of private-benefit and charitable purposes).